Got A Smart Meter? You Might Soon Get Paid To Use Less Energy. Here's How

Households that stop using certain appliances at peak times could soon be rewarded with extra cash.
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If you have a smart meter, you could soon be asked to turn off your high-energy appliances during peak times this winter in exchange for money.

It comes as fears of blackouts grow ahead of the winter, while the cost of living crisis continues to squeeze bank balances across the country.

Here’s what you need to know.

How would it work?

The National Grid Electricity System Operator (ESO) is said to be looking at plans to reward households who do not use much energy during 5pm and 8pm, in a bid to avoid straining the grid.

Consumers would receive rebates for not using items such as tumble dryers, dishwashers, washing machines and games consoles in this period, potentially saving up to £6 per kWh.

It follows a trial with 100,000 Octopus Energy customers earlier this year, when 20p was paid to customers for every kilowatt hour saved.

These customers received credit on their energy accounts, and had a “self-refund option” where they could get cash transferred back to their accounts.

It’s understood this policy, if introduced, will only apply to homes which have smart metres.

Why only smart meters?

Smart meters track your energy usage and tell your suppliers exactly how much you spend each day.

It means you are only charged for the energy you actually use, and means you can track how much energy-guzzling appliances cost you.

When might it start?

The exact dates are unclear at the moment, and there are still plenty of details yet to be worked out including how money will be paid back to customers.

However, the BBC said more should be revealed in the next two weeks.

A ESO spokesperson explained: “We are developing a new service that will be available to consumers to benefit from across this winter and will be announcing further information soon.”

It comes after the National Grid ESO told the BBC back in June that it was not “about energy rationing” when fears over supplies first began earlier this year.

But, the Sunday Times reported that the grid will apply to energy regulator Ofgem for approval and is considering opening the scheme by late October.

Why is this especially important right now?

On Friday, energy regulator Ofgem will announce what the new energy price cap will be in October and December.

It first increased to £1,971 in April, and now is expected to jump to £3,576 come Autumn, according to Consultancy Auxilione.

By January, it’s estimated to be at £4,799 before hitting £6,089 by next April, due to pressures on energy supplies following the Russian invasion of Ukraine.

On top of this, the Bank of England has forecast a recession lasting five quarters, with inflation potentially reaching 13% later this year.

Citi investment bank has even predicted that inflation could reach 18.6% – higher than levels seen in 1979 – in a startling forecast released on Monday.

Is it enough?

Plenty of people, from the official opposition to financial expert Martin Lewis, are calling for the government to act now, and provide some form of relief over energy bills to consumers.

Utilita chief Bill Bullen said the public “cannot wait” for the government to start acting on September 5, when Boris Johnson’s replacement is announced, and that a new prime minister needs to be installed as soon as possible.

On BBC Radio 4′s Today programme, the energy boss said that if the price of other commodities had risen at the same rate as gas, consumers would now be paying £25 for a pint of beer.

Kevin Hollinrake, Tory MP, also warned that Liz Truss – frontrunner in the race to be the next prime minister – has a “scattergun approach” when it comes to fixing the broken economy.

Meanwhile, Labour has called for the energy price cap to be frozen, and for a mass home insulation programme to be rolled out.

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